THE WHAT? Bath & Body Works has lowered its Q2 and FY forecasts due to a dip in traffic as consumers cost-save as inflation reaches a 40-year high, according to Yahoo Finance.
THE DETAILS Shares in the beauty company dropped as Bath & Body Works released a Q2 sales forecast down to 6 to 7 percent, lowered from its low-single-digit percent increase.
Earnings from continuing operations per diluted share are forecast to be 40 cents to 42 cents, down from its previous guidance of 60 cents to 65 cents.
THE WHY? Sarah Nash, Executive Chair and Interim Chief Executive Officer, said, “Our business continues to perform at levels significantly above pre-pandemic, although we are navigating a challenging operating and macroeconomic environment with inflationary pressure affecting our customers and our business.
“We are focused on driving improved merchandise margins and pursuing aggressive options to control costs and combat inflationary pressures.”